Though large coastal metros have the highest rent levels, some smaller secondary markets have been experiencing steeper rent increases/ Here are the most expensive metros for renters:
What Are The Top Markets For Small Asset Multifamily Rent Growth
1. WHAT ARE THE TOP MARKETS FOR
SMALL ASSET MULTIFAMILY RENT GROWTH?
Though large coastal metros have the highest rent levels, some smaller
secondary markets have been experiencing steeper rent increases.
The average monthly
rent for small properties
across the top 20 metro
areas was just above
$1,100 in 2014.
Large coastal metros
dominate the list of the
most expensive small
asset rental markets, as
well as for large
properties and the US
overall.
The gateway markets of
San Francisco, New York
and Washington DC are the
three most expensive
metros with rents at small
properties ranging between
$1,300 and $1,500.
The Most Expensive Metros for Renters
Large Assets
(50+ units)
Small Assets
(5-49 units)
$500 $750 $1,000 $1,250 $1,500
Small Asset Rent Vs. Large Asset Rent
San Francisco
Washington DC
New York
San Diego
Los Angeles
Boston
Baltimore
Top 20 MSA Average
Seattle
Miami
Philadelphia
Denver
Chicago
Tampa
Portland
Atlanta
Houston
Dallas
Phoenix
Detroit
Minneapolis
Rents in smaller
properties increased at
an average annual rate
of 2.6% between 2010
and 2014.
Denver (4.9%), Seattle
(4.1%) and San Francisco
(4.0%) showed the
fastest growth in small
asset rents.
In San Francisco and New York,
rent growth was stronger in
small properties than large
ones, which may reflect the
impact of rent-stabilized or
rent-controlled apartments.
The Markets With the Highest Rent Growth
Rent Growth — Small vs. Large Assets
0%
2%
4%
6%
Denver
Seattle
SanFrancisco
Boston
Portland
NewYork
Chicago
Baltimore
LosAngeles
WashingtonDC
SanDiego
Dallas
Houston
Phoenix
Miami
Detroit
Atlanta
Minneapolis
Tampa
Philadelphia
Small Assets
(5-49 units)
Large Assets
(50+ units)
Small balance multifamily loans are typically between $1 million and $5 million. Chandan Economics
defines small-cap properties as 5 to 19 units, mid-cap properties as 20 to 50 units, and large-cap properties
as larger than 50 units. Both small-cap and mid-cap properties can fall into the small balance spectrum.
Source: American Community Survey; Chandan Economics
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